The Massachusetts Department of Transportation: Economic Benefits of Complete Streets Investments in Massachusetts
The Massachusetts Department of Transportation (MassDOT) Complete Streets program has provided grants for nearly a decade to enhance pedestrian, bicycling, transit, landscaping, and other mobility projects in key areas such as downtowns and commercial districts. This novel study, conducted by Cambridge Econometrics in partnership with Kittelson Associates, focused on evaluating the economic impacts of street improvements through the Complete Streets Program on local property values and business activity. The project evaluates six case study projects from the Berkshires to the Boston area, measuring the impacts on local economies, specifically in terms of property values, employment, and business growth. Cambridge Econometrics supported the methodological approach and review of available data sources and led the analysis of the case study areas, applying a mix of before-after and comparison areas to help isolate the potential economic effects.
Our Approach
The analysis evaluated economic and property value data from Complete Streets project areas to carefully chosen comparison areas and the overall city or town. This approach includes a difference-in-difference analysis to control for intrinsic differences and external factors, such as the COVID-19 pandemic. The study selected specific data metrics to measure impacts, focusing on jobs, businesses, and property values. Data sources include time-series municipal assessor property value records, and establishment-based (and geo-coded) employment and business statistics, aiming to provide a comprehensive view of the economic impacts. The quantitative analysis was supported by interviews with local planning and development officials.
Key Findings
The analysis revealed generally positive economic impacts of the Complete Streets projects. Most case study areas experienced growth in property values and employment post-project. However, one case showed a negative impact likely due to the pandemic’s disproportionate effect on the project area. Despite data limitations, the findings suggest that Complete Streets improvements can lead to significant economic benefits, with variations depending on local context and external influences. Further research is recommended to strengthen data sources, and fully understand the magnitude and mechanisms of these impacts.